It has been about a month since the last earnings report for Nextgen Healthcare . Shares have added about 4.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Nextgen Healthcare due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
NextGen Healthcare Beats on Q3 Earnings, Ups FY22 View
NextGen delivered adjusted earnings per share of 24 cents in the third quarter of fiscal 2022, down 7.7% year over year. The figure, however, surpassed the Zacks Consensus Estimate by 14.3%.
GAAP earnings per share in the quarter was 8 cents, reflecting a stupendous surge of 700% from the year-earlier figure.
Revenue Details
NextGen registered revenues of $149.7 million in the fiscal third quarter, up 5.6% year over year. The figure surpassed the Zacks Consensus Estimate by 2.5%.
Segment Details
NextGen generates revenues from two sources — Recurring revenues, and Software, hardware and other non-recurring revenues.
Total Recurring revenues (89.8% of total revenues) were $134.5 million, up 4.9% from the year-ago quarter.
Total Software, hardware and other non-recurring revenues (10.2% of total revenues) amounted to $15.2 million, up 12.7% on a year-over-year basis.
Margins
In the quarter under review, NextGen’s adjusted gross profit rose 3.7% to $83.7 million. However, adjusted gross margin contracted 105 basis points (bps) to 55.9%.
Selling, general and administrative expenses fell 3.5% to $47.2 million. Research and development expenses went up 6.6% year over year to $19.4 million. Adjusted operating expenses of $66.6 million dipped 0.8% year over year.
Adjusted operating profit totaled $17.1 million, reflecting a 25.8% uptick from the prior-year quarter. Adjusted operating margin in the fiscal third quarter expanded 183 bps to 11.4%.
Financial Position
NextGen exited the third quarter of fiscal 2022 with cash and cash equivalents of $49.4 million compared with $75.3 million at the end of fiscal second quarter.
Cumulative net cash flow from operating activities at the end of the third quarter of fiscal 2022 was $36.6 million compared with $75.9 million a year ago.
In October 2021, NextGen’s management approved a $60-million share repurchase program. In the reported quarter, the company purchased approximately 2.2 million shares, worth $35.9 million, in the open market.
Fiscal 2022 Guidance
NextGen has raised its financial outlook for fiscal 2022.
The company now projects revenues in the range of $591-$595million (up from the previously guided range of $584-$590 million). The Zacks Consensus Estimate for the same is pegged at $588.1 million.
Adjusted earnings per share is now projected in the band of 96 cents-$1.00 (up from the prior guidance of 90-96 cents). The Zacks Consensus Estimate for the same stands at 95 cents.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
Currently, Nextgen Healthcare has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Nextgen Healthcare has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Nextgen Healthcare (NXGN) Up 4.2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Nextgen Healthcare . Shares have added about 4.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Nextgen Healthcare due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
NextGen Healthcare Beats on Q3 Earnings, Ups FY22 View
NextGen delivered adjusted earnings per share of 24 cents in the third quarter of fiscal 2022, down 7.7% year over year. The figure, however, surpassed the Zacks Consensus Estimate by 14.3%.
GAAP earnings per share in the quarter was 8 cents, reflecting a stupendous surge of 700% from the year-earlier figure.
Revenue Details
NextGen registered revenues of $149.7 million in the fiscal third quarter, up 5.6% year over year. The figure surpassed the Zacks Consensus Estimate by 2.5%.
Segment Details
NextGen generates revenues from two sources — Recurring revenues, and Software, hardware and other non-recurring revenues.
Total Recurring revenues (89.8% of total revenues) were $134.5 million, up 4.9% from the year-ago quarter.
Total Software, hardware and other non-recurring revenues (10.2% of total revenues) amounted to $15.2 million, up 12.7% on a year-over-year basis.
Margins
In the quarter under review, NextGen’s adjusted gross profit rose 3.7% to $83.7 million. However, adjusted gross margin contracted 105 basis points (bps) to 55.9%.
Selling, general and administrative expenses fell 3.5% to $47.2 million. Research and development expenses went up 6.6% year over year to $19.4 million. Adjusted operating expenses of $66.6 million dipped 0.8% year over year.
Adjusted operating profit totaled $17.1 million, reflecting a 25.8% uptick from the prior-year quarter. Adjusted operating margin in the fiscal third quarter expanded 183 bps to 11.4%.
Financial Position
NextGen exited the third quarter of fiscal 2022 with cash and cash equivalents of $49.4 million compared with $75.3 million at the end of fiscal second quarter.
Cumulative net cash flow from operating activities at the end of the third quarter of fiscal 2022 was $36.6 million compared with $75.9 million a year ago.
In October 2021, NextGen’s management approved a $60-million share repurchase program. In the reported quarter, the company purchased approximately 2.2 million shares, worth $35.9 million, in the open market.
Fiscal 2022 Guidance
NextGen has raised its financial outlook for fiscal 2022.
The company now projects revenues in the range of $591-$595million (up from the previously guided range of $584-$590 million). The Zacks Consensus Estimate for the same is pegged at $588.1 million.
Adjusted earnings per share is now projected in the band of 96 cents-$1.00 (up from the prior guidance of 90-96 cents). The Zacks Consensus Estimate for the same stands at 95 cents.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
Currently, Nextgen Healthcare has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Nextgen Healthcare has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.